China Vanke and partners to acquire commercial properties from Blackstone Group

China Vanke, the largest homebuilder in the mainland, is planning to spend 3.9 billion yuan to acquire commercial property companies from Blackstone Group.

In an announcement filed to Hong Kong Exchanges and Clearing, China Vanke said the company together with partners which it did not identify, proposes to acquire 96.55 per cent of the shareholding of a company affiliated with Blackstone Group, which holds a number of commercial property companies.

The acquisition will cost 12.87 billion yuan, of China Vanke contribute 3.889 billion yuan, while the remainder will be financed by partners, China Vanke said.

Negotiations over the acquisition began in January and the offer was approved by the China Vanke’s board on June 21. However, the company said it had not entered into a legal binding agreement so the deal may or may not proceed.

The purpose of the transaction was “to rapidly enhance the company’s operation and management capability for commercial properties,” China Vanke said in the announcement.

“The consideration for the transaction will not include the issuance of any securities of the

company and there have been no discussions regarding the issuance or acquisition of any shares

of the company in connection with the acquisition,” China Vanke said.

The homebuilder said the partners do not involve individuals connected to the company. China Vanke also said the size of the deal does not amount to a notifiable transaction.

(SCMP)